January 04, 2019

IRS Releases Updated Withholding Form for 2019

A final, updated version of Form W-4, Employee’s Withholding Allowance Certificate, was released Dec. 11 by the Internal Revenue Service. The final version of the form, for use in tax year 2019, is similar to the 2018 version of the form now in use and retains the use of withholding allowances. The amount of one annual withholding allowance is $4,200 for 2019.

Included with the form are instructions for employees with multiple jobs or working spouses, nonwage income, guidance for heads of households, and credit for other dependents. A worksheet also is included.

The IRS released interim guidance Nov. 26 that withholding allowances would be applied for the 2019 Form W-4 and the withholding methods for 2019, which also were released Dec. 11 in Notice 1036.

The guidance proposed eliminating one of the alternative-withholding procedures--the combined income tax withholding and employee FICA tax withholding tables because of “unintended complexity and burden of the method,” the agency said in Notice 2018-92.

The temporary suspension of the requirement that employees must give employers new Forms W-4 within 10 days for reductions in allowances solely resulting from changes made by the tax code overhaul (Pub. L. 115-97) remains until April 30, 2019, the IRS said. If an employee has a change of status no later than April 30, 2019, that reduces the number of withholding allowances because of the tax code overhaul, the employee may submit a new W-4 by May 10, 2019, the agency said.

The notice said that until further notice, for workers failing to file valid Forms W-4, employers are to withhold tax based on a single status filer with zero withholding allowances. Separately, for those failing to file Forms W-4P addressing pension and annuity payments, employers are to apply withholding based on a married individual claiming three withholding allowances.

IRS updates related to the W-4, including information about legislation related to the form, may be found at the agency’s website www.irs.gov/FormW4.

Reproduced with permission. Published December 12, 2018. Copyright 2018 by The Bureau of National Affairs, Inc. (800-372-1033)